Leading life insurer ICICI Prudential Life Insurance recently introduced retirement solution having the scope of increasing the regular income option. According to a statement shared by the insurer on Tuesday, May 25, ICICI Prudential's new retirement solution involves the combination of two variants of its ‘Guaranteed Pension Plan'. It is a customised retirement solution with increasing income, in order to meet the rising costs of living, said the insurer. (Also Read: Exide Life Launches 'Guaranteed Wealth Plus' Insurance Plan: Check All Features )
According to ICICI Prudential Life Insurance, the new retirement solution provides customers with increasing regular income which doubles after a period of five years and triples after the 11th year. This is likely to shield the policyholders against the rising costs of living.
The annuity products offered by insurance companies enable policyholders to plan for their retirement. They are available in two variants, namely, immediate and deferred annuity.
The immediate annuity option allows policyholders to start receiving regular income immediately by paying a one-time premium. Whereas, the deferred annuity option provides the flexibility to start receiving income in the future, closer to the time of retirement.
Policyholders have the option to defer the start of the income for a maximum period of 10 years. The longer the deferment, the higher would be the income. ICICI Prudential guaranteed pension plan offers early return of purchase price from the age of 76 years or on turning 80. The annuity product also involves other features such as the return of purchase on death or upon being diagnosed with a specific critical illness or a permanent disability due to an accident.
On Tuesday, May 25, shares of ICICI Prudential Life Insurance settled 4.02 per cent lower at Rs 531.05 apiece on the BSE.